Preliminary selected sales figures of Answear.com for Q3 2022 and 9 months 2022.

Title: Preliminary selected sales figures of Answear.com for Q3 2022 and 9 months 2022.
 
Date: 2022.05.10

The Management Board of Answear.com SA (the _quot;Company_quot;) presents preliminary selected sales data for Q3 2022 and 9 months 2022, together with comparative figures for Q3 2021 and 9 months 2021.

Preliminary sales figures for Q3 of 2022 and 9 months 2022:

- In Q3 2022, online sales (1) increased by 51% compared to the same period in 2021, amounting to PLN 244 million (Q3 2021: PLN 161 million). Online sales for 9 months 2022 amounted to PLN 607 million and increased by 38% compared to 9 months of 2021, when online sales of PLN 439 million has been recorded;

- Sales revenue according to IFRS (2) reported for the third quarter of 2022 amounted to PLN 233 million, achieving a 3Q2022 / 3Q2021 dynamic equivalent to 50% (Q3 2021: PLN 155 million). Sales revenue for 9 months 2022 amounted to PLN 608 million and increased by 43% compared to 9 months of 2021 sales revenue being PLN 424 million.

Management's commentary on the figures:

The third quarter's sales results show an improvement in the sales growth rate during the period, as a consequence of - inter alia - the following factors:

- continuous improvement of the offer, increasing the number of SKU in Answear stores, introduction of new brands and product categories;

- leverage the effects of geographic expansion into new markets in the southern part of Europe, which has resulted in a growing customer base and volume of orders. The geographic extent of Answear's markets makes enable us to sell new autumn-winter collections in Central European markets and extend the sales period of summer collections in the southern part of the Europe;

- effective and efficient marketing activities, including advertising campaigns run on TV, which supported the process of building brand awareness, as well as helped to effectively use the summer sales period to increase sales volume;

- successful come back to the Ukrainian market: thanks to the appropriate marketing campaigns with the support of the local team and commitment to charity, Answear became the sales leader in e-commerce fashion, recognized with awards for best online clothing store and best multibrand store in 2022;

- continued development of the private label - the new capsule _quot;Shero_quot; and involvement as a partner to the campaign called _quot;Wszechmocne_quot; had a positive impact on sales, but also had the additional effect of reinforcing the marketing message, distinguishing Answear on the competitive landscape and attracting customers to Answear's online stores.

Explanatory notes:

(1) On-line sales means sales invoiced during the period, including also credit notes related to returns received and booked during the period and also including sales based on commission agreements with suppliers in its full price (net value) paid by customer. On-line sales include also charges invoiced to customers for shipments below the free delivery threshold.

(2) Sales revenues according to IFRS accounting standards include revenues from the sale of goods purchased for its own account as well as revenues from the sales based on commission agreement expressed as revenue from commission services being calculated as the difference between sales price invoiced to customer and value of merchandise sold. Sales revenue include also commission for running the www.wearmedicine.com internet site and charges invoiced to customer for shipments below the free delivery threshold. Sales revenue figure is also adjusted by the value of provisions for the returns corresponding to sales transactions executed during reported period but expected to be processed in the next period. Moreover, it also includes provision for customer loyalty program accounted for sales recorded in reported period.

Disclaimer: The Company informs that the sales figures presented are preliminary and have been calculated in accordance with the best Management's knowledge at this stage and may differ from the final figures for Q3 2022 and 9 months 2022 to be published in forthcoming quarterly report.

source: biznes.pap.pl